Gas prices in the united States are going to rise once Hurricane Harvey finishes with Texas.
The area that Hurricane Harvey is hitting is where much of the U.S.’s oil refineries are. Many of these refineries are shutting down because of the hurricane. Due to this, there will be less crude oil being turned into gas. This will result in an increase in gas prices.
When it comes to gas price spikes following hurricanes, they usually peak after about two weeks. This could results in gas prices going up by 20 cents per gallon to 80 cents per gallon. However, the increase in prices should only last for about two to four weeks before going back to normal.
As of Sunday, there were 10 refineries that were shut down due to Hurricane Harvey. Production of oil in the Gulf of Mexico has also went down by 22% as of Sunday due to the poor weather. While gas prices will go up, crude oil prices are only slightly down right down, reports CNNMoney.
‘There were fears this could be a Katrina-like event,” Tom Kloza, the Global Head of Analysiss for the Oil Price Information Service, told USA Today. “This is not a Katrina like event.”
Gas prices are already a little more expensive recently than just a short time before Hurricane Harvey hit. The current national price in the United States $2.368 for regular fuel. Gas prices from the same time last week were $2.334 and prices from the same time in 2016 were $2.214.
As of this writing, William White did not hold a position in any of the aforementioned securities.